How does WhatsApp Make Profit with Freemium Business Model

Whatsapp is developed by Brian Acton and Jan koum in 2009. It’s a premium messaging app and now available in iPhones, androids, blackberries, windows and in even desktops too.

You would be surprised if you don’t know that Facebook has bought Whatsapp in 2014. The Business Model of Whatsapp is very simple even if it appears complex. It is constantly being considered as a part of Facebook which works internally via transfer pricing.

Most people get astonishingly and pop their eyes out when they get to know that Whatsapp makes money indirectly and is now standing as cross-platform of the novel business model.

Whatsapp has no sticker sale, advertisements, subscription sales, renewal options etc, but still, it manages to earn better than ever.

The pleasant attractions of using WhatsApp more profusely are:

Whatsapp is used by more than one billion people all over the world.

More than 55 billion images, videos, status, gifs, messages are sent.

More than 60 languages are available in WhatsApp which increases the width of WhatsApp fan.

Whatsapp is the pop star of messaging world. So let’s start with its wealth keys and their strategy.

1. Using of Bytes and Data Exchange

When we use the internet, we create bytes of terabytes on every fraction of second. The data we type like keywords for shopping, knowledge, watching searching etc purposes is stocked and then analyzed very critical on the basis of their content.

When we send messages, these messages are passed through routes of the server before it is being delivered to the receiver and hence a large database is stored personally.

The data is shared on the Facebook database. Facebook effectively hits on its target by displaying various options of advertisement related to our interests. The things we share on the WhatsApp mirrors our interests, likes, dislikes etc.

The Facebook very transparently shows up things of our personal interest like shopping materials, likes etc in form of advertisements and as soon as we click on that, the price goes up per click as facebook know to display right sets of ads for their customers.

2. Marketing Through Ads and Partnerships with Various Companies

The facebook performs partnerships with WhatsApp. Various plans are developing for being partners with different companies which includes banks and e-commerce and other service providers which help customers to establish communication to attain their Business objectives.

The WhatsApp business app allows its users to create their business profile and provide various links to outperform their business model. By creating WhatsApp profile they can become verified for small business openings and their operations. By creating a verified profile, the owners can lay their stress much on their marketing plan for its exponential growth.

3. Tie-ups with Telecom Partners

Sequoia Company has tied up with Whatsapp Company. Sequoia Capital has invested a huge amount in India and there are many other companies which are interested deeply in investing in India so as to make their companies plan more profitable.

Reliance communication has also teamed up with WhatsApp to provide a unique scheme arch and WhatsApp plan for its users. Therefore Whatsapp is also making money by tie-ups with different telecommunications companies too.

4. Data Mining, Insight Generations

By data mining, insight generations, selling the insights to online platform Companies like facebook and google are extremely clever and hence they make money out of WhatsApp by the barter system.

They give their services out of freebies and free cost to their customers in the hollow name of it. But behind the scenes, they earn money by thoroughly attracting people in the name of the free cost of its services and so a huge amount of people are attracted.

Whatsapp keeps in track of messages you send and searches related to the keywords. These companies use the customer information to exchange it with companies for the service they provide probably.

Whatsapp uses end to end encrypted messages and so their messages and information are smartly coded and locked up. So the companies can’t comprehend the smart information but use it effectively to hit their target ads.

Conclusions

Whatsapp is gathering shreds of evidence of popularity and making lots of money by creating itself as the freemium model of business.

Facebook has bought WhatsApp and is using it to make money by creating attractive offers as ads of personal interests and many more.

So you have come across a lot of ways in this article in which Whatsapp is making money behind scenes. Read them tell how is it by commenting below.